ISLAMABAD: Pakistan Prime Minister Imran Khan visited the Kingdom looking for financial assistance from the Saudi leadership to ease the financial crisis the country is facing.
Saudi Arabia has agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis.
The $6 billion total exceeds will likely reduce the size of bailout package from the International Monetary Fund (IMF).
The prime minister also spoke at a global investment conference organised by Crown Prince Mhammad Bin Salman where hundreds of investors were present looking for the potential opportunities to tap. The session, according to some media reports, was specially planned to showcase Pakistan as investor's paradise.
The outcomes also endorsed Pakistan's importance for the Saudi Arabia and it's leadership.
Here are the details of what the visit has achieved:
- $3 billion loan: A memorandum of understanding (MoU) was signed between Finance Minister Asad Umer and Saudi Finance Minister Muhammad Abdullah Al-Jadaan under which Saudi Arabia would place a deposit of USD three billion for a period of one year as balance of payment support.
- Deferred oil payment: It was also agreed that the Kingdom of Saudi Arabia would also provide a one-year deferred payment facility for import of oil, up to USD three billion and this arrangement would be in place for three years, which would be reviewed thereafter.
- Visa fee reduction: Crown Prince Muhammad bin Salman agreed to the Prime Minister’s suggestion to reduce visa fee for Pakistani workers, which is a significant step towards enhancing the country’s workforce in Saudi Arabia, as well as facilitating travel of people from both the countries.
- Oil refinery in Gwadar: The earlier visit of the Saudi delegation had evaluated the possibility of investing in a petroleum refinery in Pakistan. Saudi Arabia confirmed its interest in this project, and an MoU will be signed after obtaining cabinet approval.
- Development of mineral resources: Saudi Arabia expressed interest in development of mineral resources in Pakistan. For this purpose, the Federal Government and the Government of Balochistan will consult, following which a delegation of the Kingdom will be invited to visit Pakistan.
- Future Investment Initiative: A Pakistan-specific session was organized at Future Investment Initiative (FII), in which the prime minister underlined the country’s priorities towards optimizing the economy and attracting foreign investment.
- Investment opportunities: Stressing the focus of his government on human resource development, the Prime Minister highlighted the potential of Pakistani youth, and identified lucrative investment opportunities in the tourism sector, minerals, coal and gas exploration and information technology.
- CPEC: The PM elaborated the significance of China Pakistan Economic Corridor (CPEC), including the investment opportunities in the special economic zones.